Does Lam Research Corporation (LRCX) Have a Long Runway for Growth?

Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter “Carillon Eagle Growth & Income Fund”. A copy of the letter can be downloaded here. 2025 marked a positive period for the equity market. The S&P 500 Index returned 2.7% in Q4 and finished the year up 17.9%. The year started with potential disruptions and heightened volatility, while it ended with optimism driven by strong AI investment, clarity in policies, and U.S. Federal Reserve (Fed) interest rate cuts. The market’s performance was significantly affected by the communication services and technology sectors. From a return‑driver standpoint, the market expansion in the year was driven by earnings growth. The firm observes favorable conditions as 2026 approaches, and believes it can achieve another year of strong equity returns. The Fund holds net assets of $493.06 million across 48 holdings. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Carillon Eagle Growth & Income Fund highlighted Lam Research Corporation (NASDAQ:LRCX) as one of its leading contributors. Lam Research Corporation (NASDAQ:LRCX) is a technology company that supplies semiconductor processing equipment for the fabrication of integrated circuits. On February 11, 2026, Lam Research Corporation (NASDAQ:LRCX) stock closed at $235.12 per share. One-month return of Lam Research Corporation (NASDAQ:LRCX) was 8.98%, and its shares are up 184.52% over the past twelve months. Lam Research Corporation (NASDAQ:LRCX) has a market capitalization of $297.943 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its fourth quarter 2025 investor letter:

"Lam Research Corporation (NASDAQ:LRCX) shares benefitted from improving sentiment regarding the importance of its products within the semiconductor capital spending market. Following disappointments from semiconductor peers, Lam Research confirmed growth projections for next year, supported by bookings data. As a leading provider of equipment tied to memory requirements for AI, we believe Lam Research could have a long and healthy path to growth moving forward."

Lam Research Corporation (NASDAQ:LRCX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 93 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the third quarter, up from 85 in the previous quarter. While we acknowledge the potential of Lam Research Corporation (NASDAQ:LRCX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Lam Research Corporation (NASDAQ:LRCX) and shared the list of best strong buy tech stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.